Emerging Markets Power Boston Scientific: Will the Growth Trend Continue?

Emerging markets remain a vital growth engine for Boston Scientific Corporation BSX, anchoring the company’s broader international strategy and long-term expansion plans. In the first quarter of 2025, BSX’s emerging market operations, which include all countries except the United States, Western and Central Europe, Japan, Australia, New Zealand, and Canada, delivered robust operational sales growth of approximately 9.8% year over year. This performance, fueled by favorable economic trends, expanding healthcare infrastructure, and sustained investment, was delivered despite ongoing geopolitical headwinds. Boston Scientific continues to view these high-potential regions as central to driving adoption of its diverse, minimally invasive medical technologies. 

Emerging markets offer strong growth opportunities for the medical device industry, fueled by trends such as preventive healthcare, portable diagnostics and digital health adoption. Per India Brand Equity Foundation, India’s medical device market was valued at $15.35 billion in 2023 and is expected to reach $20.51 billion by 2029 (CAGR 5.35%). China is a key market, supported by its large population, growing middle class and simplified regulatory pathways. Brazil is another major market with a large population and expanding economy, attracting medical device manufacturers. Southeast Asian countries like Thailand, Vietnam and the Philippines are also rising in importance due to rapid economic growth.

Boston Scientific’s strong performance in emerging markets underscores the strategic importance of these regions in driving the company’s long-term international growth. As healthcare needs continue to evolve across these rapidly growing economies, we expect Boston Scientific’s sustained investment, localized strategies, and diversified portfolio position to help capture future growth and maintain its leadership in the global medical device space.

BSX’s Competition in the Emerging Markets

Competition in emerging markets remains intense, with key players like Abbott Laboratories ABT and Medtronic MDT actively expanding their global reach. 

Abbott, which derives over 60% of its total revenues from outside the United States, has shown consistent strength in emerging economies. In the first quarter of 2025, its Established Pharmaceuticals Division (“EPD”), focused almost entirely on emerging markets, posted high single-digit organic growth, driven by strong demand in several countries across Asia, Latin America and the Middle East. Abbott continues to localize its branded generics product portfolio to address regional healthcare needs.

Similarly, Medtronic generated nearly 49% of its revenues from international markets in the fourth quarter of fiscal 2025, underscoring its global reach. The company’s emerging market business grew in the mid-single digits during the quarter, with notable strength in India, Southeast Asia and Eastern Europe. Medtronic’s strategy in these regions centers on expanding access to advanced medical technologies and addressing unmet clinical needs through localized engagement and tailored product offerings.

BSX’s Price Performance, Valuation and Estimates

Shares of Boston Scientific have gained 35.8% in the past year compared with the industry’s growth of 9.6%. The S&P 500 composite also grew 12.2% in the same period.

From a valuation standpoint, BSX trades at a forward price-to-earnings ratio of 33.69, above the industry’s 21.73.

The Zacks Consensus Estimate for BSX’s earnings has been on the rise over the past 60 days.

BSX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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